On July 27, Rongxin Huike Electrical Co., Ltd., referred to as Rongxin Huike, saw its initial public offering review status on the Shanghai Stock Exchange's Science and Technology Innovation Board, or STAR Market, change to "terminated."
The termination occurred because Rongxin Huike and its sponsor withdrew their issuance and listing application. According to Article 63 of the Shanghai Stock Exchange's Stock Issuance and Listing Review Rules, the exchange has ended their listing review process.
According to the prospectus, the company is a high-tech enterprise specializing in the research, development, manufacturing, sales, and service of core equipment for new-type power systems. It primarily provides clients with high-end equipment and technical services, including flexible transmission complete sets of equipment and high-power converters.
Rongxin Huike's products and services are widely applied across various sectors of the new-type power system, covering areas such as efficient power generation, power transmission and distribution, oil and gas pipelines, national defense science and industry, shipbuilding, metallurgy and chemicals, and electrical energy storage. These applications support major industries and projects, helping to build a new power system centered on new energy sources and promoting technological innovation in world-class power high-end equipment.
As a key supplier of flexible DC converter valve complete sets of equipment, the company participated in 4 of the 5 high-voltage flexible DC projects that have been put into operation domestically since 2020. It supplied converter valve products accounting for over 30% of the total installed capacity.
During the reporting period, the company's downstream customers were primarily large state-owned enterprises, including State Grid, China Southern Power Grid, new energy power generation groups, and National Pipeline Network Group, as well as industrial and mining enterprises, and overseas new energy power generation and industrial and mining companies. The company mainly procures raw materials such as electronic components (IGBTs, capacitors, diodes, etc.), structural parts, and water cooling systems.
Rongxin Huike has a high degree of dependence on its major clients. During the reporting period, sales revenue from the top five customers accounted for 70.84%, 71.27%, and 60.17% of total operating revenue, respectively. If customers make significant adjustments to procurement needs or pricing principles, or if the company's products fail to consistently meet customer demands, it could negatively impact the company's subsequent operating performance.
Financially, for the fiscal years 2023, 2024, and 2025, the company achieved operating revenues of approximately RMB 233 million, RMB 508 million, and RMB 702 million, respectively. Net profits during the same periods were approximately RMB -56.28 million, RMB 35.42 million, and RMB 76.88 million, respectively.